Mitsubishi Motors (MMC) consolidated net sales fell 3% to JPY610.1bn in the first quarter of fiscal 2008 ended 30 June.
Go deeper with GlobalData
MMC said an earnings boost from improvements in its model mix was more than offset by falling sales volume and a stronger yen.
Operating profit was JPY3.9 up on a year ago at JPY9.9bn, a hike of 65%, thanks to higher sales in Europe, a more profitable model mix in all regions including an increase in the ratio of build-up vehicle sales to total unit volume in Asia and other regions, and cost reductions including lowered sales expenses in the US.
“These more than offset the effects of a stronger yen and lower profits from the company’s sales finance operations in the US,” the automaker noted.
Ordinary profit soared 523% or JPY13.6bn to JPY16.2bn as operating profit rose, the balance of interest received and paid increased and the automaker made gains on foreign exchange.
Net profit of JPY10.3bn was a year-on-year improvement of JPY18.5bn.
“This improvement was due to the upturn in ordinary profit and to the lack of one-time reorganisation costs stemming from the regional integration of domestic consolidated sales companies booked in fiscal 2007,” MMC added.
Though profits rose, global retail sales volume in the first quarter fell 7% to 314,000 vehicles.
In Japan, where demand was flat, MMC sales fell 15% to 39,000 units due to slower sales of SUV models as more customers switched to smaller cars, and to the company’s cutback in low-margin minicar trading.
North America sales were off 23% to 37,000 as rises in Canada – where Mitsubishi was a relatively recent arrival – and Mexico failed to offset the significant drop in sales of locally built models in the US, despite firm sales of the imported new Lancer.
European sales rose 14% to 92,000 vehicles driven by continuing growth in unit sales in Russia, Ukraine and central Europe which offset lower sales in western Europe.
In Asia and other regions, sales fell 11% to 146,000 vehicles. This, MMC said, was the result of lower sales of kits for local assembly in China and at Proton in Malaysia outweighing “robust” sales in Brazil, Indonesia and the Philippines.
Fiscal 2008 first-half and full-year forecasts remain unchanged, the automaker said.
